Forming a Single-Member LLC in Kansas | A Guide For Business Owners

Forming a Single-Member LLC in Kansas

If you would like to start an LLC in Kansas, also known as The Sunflower State, there are a few things that you should consider. In Kansas, putting up a single-member limited liability company (LLC) will benefit you and your business since it protects your assets, and maintain good standing. It also combines a corporation’s limited liability protection with a sole proprietorship’s simplicity and flexibility.

In this article, Webinarcare Editorial Team will walk you through the step-by-step process of forming a Single-Member LLC in Kansas and provide valuable tips to help you succeed in your entrepreneurial journey.

Understanding Single-Member LLCs

A single-member LLC in Kansas is a business entity with only one owner, also known as a member. This business structure offers several advantages, including limited liability protection, pass-through taxation, and ease of management. In Kansas, single-member LLCs are subject to state-specific regulations and requirements, which may vary from other states. The formation process typically involves choosing a unique business name, registering with the Secretary of State, and completing other required steps to comply with Kansas laws and regulations.

A Limited Liability Company is subject to state-specific regulations and requirements, which we will cover in this guide. Before that, we reviewed some of the Best LLC Services for you to check out.

LLC Service

Rating & Pricing

Top Features

Learn More

#1 Recommendation

$0 + State fee

  • Free LLC Formation

  • 100% accuracy

  • Best Customer Service

$0 + State fee

  • Free LLC formation

  • Costly Ad-on services

  • Other Business services

It is suggested that you speak with a legal professional before you begin setting up your single-member LLC. They’ll understand what’s best for you and your company. To safeguard your personal assets from business debts, you can always start an LLC for your business.

WEBINARCARE EDITORIAL TEAM

How to Form a Single-Member LLC in Kansas

To form a single-member LLC for your business, you must follow the guidelines, including research and planning, registering your single-member LLC, establishing your business operations, and maintaining compliance with Kansas regulations.

Step 1: Research and Planning

Before you can form your single-member LLC in Kansas, conducting thorough research and creating a solid business plan is crucial. This stage involves the following steps:

Research State-Specific Requirements

Each state has its own regulations for maintaining and forming an LLC. To ensure you comply with Kansas law, familiarize yourself with the state’s LLC requirements, such as filing fees, Annual Report requirements, and ongoing compliance obligations.

Choose a Business Name

Selecting a name for your LLC is an essential part of the formation process. Your business name should be unique, memorable, and reflective of your products or services. There is a complete guide on Business Name Search in Kansas for you to have a proper LLC business name. 

In Kansas, your single-member LLC name must:

  • Include the words “Limited Liability Company,” “LLC,” or “L.L.C.”
  • Not contain any words or phrases that are prohibited by state law
  • Be distinguishable from the names of other businesses registered in the state

If you do not wish to file your LLC right away but want to hold the name that you have decided on, then you can reserve your LLC name for 120 days. You must file a name reservation application with the Kansas Secretary of State to keep the name. 

You can register your business under a different legal name if your preferred name isn’t available.  Once you have chosen a name, you can submit an application for a Kansas DBA (doing business as). In this manner, you can choose any name you desire for your business. A DBA allows a company to operate under the name of the person or entity who owns it.

You can check the availability of your desired business name by searching the Kansas Secretary of State Business Entity‘s website.

Recommended: Embark on your entrepreneurial journey confidently and affordably with LegalZoom’s DBA service, the beacon that guides businesses to credible branding and comprehensive compliance. Discover how effortless success can truly be!

LegalZoom – ($99 + Filling Fees)

Determine Licensing and Permit Requirements

Depending on the nature of your business, you may need to obtain certain licenses and permits to operate legally. Research the specific requirements for your industry in Kansas by consulting the state’s business licensing portal, contacting your local Chamber of Commerce, or seeking advice from Kansas Business Attorney.

Create a Business Plan

A well-crafted business plan will guide your single-member LLC’s growth and success. Your business plan for your Kansas single-member LLC should cover key aspects such as:

  • Executive summary
  • Company Description
  • Market Analysis
  • Competitive Analysis
  • Products and Services
  • Marketing and Sales Strategy
  • Organizational Structure
  • Financial Projections

Step 2: Registering Your Single-Member LLC

Once you have completed the initial research and planning, it’s time to register your single-member LLC with the Kansas Secretary of State. Here are the steps involved:

File the Articles of Organization

To officially form your single-member LLC in Kansas, you must file the Kansas Articles of Organization with the Kansas Secretary of State. This document includes essential information about your LLC, such as:

  • The name of your LLC
  • The address of your LLC’s principal office
  • The name and address of your registered agent
  • The purpose of your LLC (optional in some states)

You can typically file the Articles of Organization online, by mail, or in person. A filing fee is associated with this process, which costs around $165.

Appoint a Registered Agent

A Registered Agent is a person or entity responsible for receiving legal documents and official notices on behalf of your LLC. In Kansas, your Registered Agent must:

  • Be a resident of Kansas or a business entity authorized to do business in the state
  • Have a physical address in Kansas (P.O. boxes are not acceptable)

It’s essential to choose a reliable and responsible Kansas Registered Agent, as failure to receive and respond to legal documents can have serious consequences for your business. 

You can serve as your own Registered Agent or appoint a friend, family member, or a professional Kansas Registered Agent Services.

Obtain an Employer Identification Number (EIN)

An EIN, also known as a Federal Tax Identification Number, is used by the Internal Revenue Service (IRS) to identify your business for tax purposes. You’ll need an EIN to open a business bank account, file taxes, and hire employees (if necessary). 

The application of an EIN in Kansas can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

In obtaining Kansas EIN for your single-member LLC, you should be aware to ensure that your LLC is eligible for an EIN. You need an EIN if you have employees, operate as a corporation or partnership, or meet other specific IRS criteria. Before applying, gather the required information, including your LLC’s name, mailing address, and the responsible party’s Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Also, you can apply for an EIN through various methods, including online, by fax, mail, or telephone (for international applicants).

Recommended: Professional services have the EIN included in their LLC formation package. We recommend using –

LegalZoom – ($0 + State Fee for LLC formation)

Register Your Single-Member LLC

If your single-member LLC will collect sales tax, have employees, or be subject to certain state taxes, you may need to register with the Kansas Secretary of State. Check the department’s website or consult a tax professional for specific registration requirements.

Step 3: Establishing Your Business Operations

With your single-member LLC officially registered in Kansas, you can now focus on setting up the operational aspects of your business.

Open a Business Bank Account

Opening a separate bank account for your Kansas single-member LLC is essential for maintaining a clear separation between your personal and business finances. This separation helps preserve the limited liability protection offered by the LLC structure. You can check out the Best Banks in Kansas, which offer the best fees, services, and convenience for your business needs.

Set Up an Accounting System

Effective financial management is crucial for the success of your single-member LLC. Establish a reliable accounting system to track income, expenses, and tax obligations. You can manage your finances using spreadsheets and accounting software by becoming a CPA in Kansas.

Create an Operating Agreement

Although not required by Kansas law, it’s highly recommended that you create an operating agreement for your single-member LLC. This document outlines your LLC’s management structure, decision-making process, and ownership rights. A clear Kansas Operating Agreement can prevent disputes and provide a framework for managing your business.

The operating agreement includes information like-

  • About Business
  • Members and management
  • Capital contribution
  • Profit Distribution
  • Change of membership
  • Dissolution

Step 4: Maintaining Compliance with Kansas Regulations

Once your single-member LLC is up and running, staying informed and compliant with state regulations is essential. Here are some key ongoing requirements for LLCs in Kansas:

File Annual Report

LLCs must file Annual Report with the Kansas Secretary of State. This report typically includes updated information about your LLC, such as its business address, Registered Agent, and member information. 

In Kansas, the annual report fee costs around $25 online and $27.5 by mail which can be paid every 1 year.

Pay Required Taxes and Fees

As a single-member LLC, your business income will be subject to pass-through taxation, meaning profits and losses will be reported on your personal tax return. However, you may still be responsible for other state taxes, such as sales tax, payroll tax, or franchise tax which you can pay in Kansas Department of Revenue.

In terms of franchise tax for your single-member LLC in Kansas, there is No franchise tax. Consult a tax professional to ensure you meet all your tax obligations.

Maintain Accurate and Up-to-Date Records

Keeping detailed records of your single-member LLC’s transactions, meetings, and decisions is crucial for maintaining compliance with state regulations and protecting your limited liability status. Regularly review and update your records to accurately reflect your business activities.

Cost of Forming a Single-Member LLC in Kansas

Even if you have a business name and structure in mind, consider whether you can afford the costs of forming an LLC in Kansas. Articles of Organization costs around $165. The initial filing fee is $165 (by mail and $160 online) , and the annual fee is $25 online and $27.5 by mail. 

If you forget to pay the annual fee for your Kansas LLC, you will have a penalty of $50. However, you can check the Kansas LLC Cost for additional information. 

Advantages of Starting a Single-Member LLC

Even though some people decide on what to do with their businesses, some choose to put it in their own individual name, while others still choose to set it up via single-member LLC in Kansas. These advantages will help establish a single-member LLC in Kansas. 

  • Limited Liability Protection: One of the primary advantages of a single-member LLC is the limited liability protection it provides to its owner. This means that the owner’s personal assets, such as their home and personal savings, are protected from the debts and liabilities of the business. In the event of a lawsuit or financial loss, only the assets owned by the LLC are at risk.
  • Pass-Through Taxation: Single-member LLCs enjoy pass-through taxation, meaning that the business profits and losses are reported on the owner’s tax return. This avoids the double taxation that traditional corporations face, where the company and the owner are taxed separately on the same income.
  • Simplified Management: Single-member LLCs have a simplified management structure compared to other business structures. The owner has full control over the business’s decision-making process and day-to-day operations without needing a board of directors or complex corporate formalities.
  • Flexibility in Business Operations: Single-member LLCs offer flexibility in terms of operational and management structures. The owner can operate the business as a sole proprietor while benefiting from an LLC’s limited liability protection.
  • Credibility: Forming a single-member LLC can enhance the credibility of your business in the eyes of potential customers, suppliers, and financial institutions. An LLC designation can make your business more professional and established than a sole proprietorship.

FAQs

What is a single-member LLC in Kansas?
A single-member LLC in Kansas is a limited liability company with only one owner.
What are the benefits of forming a single-member LLC in Kansas?
The benefits of forming a single-member LLC in Kansas include limited liability protection, flexible management structure, and pass-through taxation.
How much does it cost to form a single-member LLC in Kansas?
It costs $160 to register a single-member LLC in Kansas with the Secretary of State.
How long does it take to form a single-member LLC in Kansas?
It typically takes three to five business days for the Secretary of State to process and approve the registration of a single-member LLC in Kansas.
What are the annual requirements for maintaining a single-member LLC in Kansas?
In Kansas, single-member LLCs are required to file an annual report and pay an annual fee.
Can I form a single-member LLC in Kansas if I live in another state?
Yes, you can form a single-member LLC in Kansas even if you live in another state.
Do I need a registered agent to form a single-member LLC in Kansas?
Yes, a registered agent is required for single-member LLCs in Kansas.
Can I be my own registered agent for my single-member LLC in Kansas?
Yes, you can act as your own registered agent for your single-member LLC in Kansas.
What are the rules for naming my single-member LLC in Kansas?
The name of your single-member LLC in Kansas must not be too similar to other registered business names and cannot contain certain prohibited words.
Can two LLCs have the same name in Kansas?
No, two LLCs cannot have the same name in Kansas.
Can I change the name of my single-member LLC in Kansas after it is formed?
Yes, you can change the name of your single-member LLC in Kansas by filing an Articles of Amendment with the Secretary of State.
Can I convert my single-member LLC in Kansas to a multi-member LLC?
Yes, you can convert your single-member LLC in Kansas to a multi-member LLC by filing appropriate paperwork with the Secretary of State.
What kinds of businesses are prohibited from forming an LLC in Kansas?
Certain professional services, such as lawyers, doctors, and accountants, are prohibited from forming an LLC in Kansas.
Do I need an operating agreement for my single-member LLC in Kansas?
While an operating agreement is not required by Kansas law, it is strongly recommended to protect the business and its owner.
What tax obligations does my single-member LLC in Kansas have?
Single-member LLCs in Kansas are taxed as pass-through entities and their owners report the income on their personal tax returns.
What is a foreign LLC in Kansas?
A foreign LLC in Kansas is a limited liability company that was created in another state but is doing business in Kansas.
Do I need to register my single-member LLC from another state as a foreign LLC in Kansas?
Yes, if your single-member LLC from another state is doing business in Kansas, it is required to register as a foreign LLC in Kansas.
What is the process for registering a foreign LLC in Kansas?
The process for registering a foreign LLC in Kansas requires filing a Certificate of Authority with the Secretary of State.
Can I register my LLC online in Kansas?
Yes, you can register your single-member LLC online in Kansas through the Secretary of State’s website.
Can I use a PO Box as the address for my single-member LLC’s registered agent in Kansas?
No, a physical street address is required as the address for the registered agent of a single-member LLC in Kansas.
Are there any residency requirements for forming a single-member LLC in Kansas?
No, there are no residency requirements for forming a single-member LLC in Kansas.
Do I need a business license to operate a single-member LLC in Kansas?
The business licensing requirements for single-member LLCs in Kansas differ based on the city or county where the business is operating.
How do I dissolve my single-member LLC in Kansas?
To dissolve a single-member LLC in Kansas, you must file Articles of Termination with the Secretary of State and pay any outstanding fees.
What happens if I don’t file my annual report or pay my annual fee for my single-member LLC in Kansas?
Failure to file your annual report or pay your annual fee for your single-member LLC in Kansas can result in the Secretary of State administratively dissolving your business.
Can I have a single-member LLC that employs people in Kansas?
Yes, a single-member LLC in Kansas can have employees and operate like any other business that has employees.
What happens if my single-member LLC in Kansas is sued?
The limited liability protection provided by the single-member LLC means that the business’s owner is not personally responsible for the business debts and liabilities in a lawsuit.
Can I change my LLC’s business address in Kansas?
Yes, you can change your single-member LLC’s business address in Kansas by filing Articles of Amendment with the Secretary of State.
What are the advantages of hiring a lawyer when forming a single-member LLC in Kansas?
A lawyer can evaluate your situation and help you decide which type of business structure is best for your situation. They can also help you create an operating agreement and ensure your business is in compliance with all Kansas state laws.
Are governverment forms necessary to get a Single-member LLC in Kansas?
Yes, it is necessary to file government forms to get a single-member LLC in Kansas.
What is a single-member LLC?
A single-member LLC is a type of limited liability company that has only one owner.
Can I form a single-member LLC in Kansas?
Yes, you can form a single-member LLC in Kansas.
Do I need a lawyer to form a single-member LLC in Kansas?
No, you do not need a lawyer to form a single-member LLC in Kansas, but you may choose to hire one.
How do I form a single-member LLC in Kansas?
To form a single-member LLC in Kansas, you must file Articles of Organization with the Kansas Secretary of State.
What is the cost to form a single-member LLC in Kansas?
The fee to file Articles of Organization for a single-member LLC in Kansas is $160.
Do I need an Operating Agreement for my single-member LLC in Kansas?
Although it is not required, it is recommended to have an Operating Agreement for your single-member LLC in Kansas.
Can I be the registered agent for my single-member LLC in Kansas?
Yes, you can be the registered agent of your single-member LLC in Kansas, but you must have a physical address in Kansas.
How do I get a tax ID number for my single-member LLC in Kansas?
To get a tax ID number for your single-member LLC in Kansas, you can apply online with the IRS.
Do I need to file an annual report for my single-member LLC in Kansas?
Yes, you need to file an annual report for your single-member LLC in Kansas, and the fee is $50.
Can I change the name or address of my single-member LLC in Kansas?
Yes, you can change the name or address of your single-member LLC in Kansas by filing an amendment with the Kansas Secretary of State.
Can I convert my single-member LLC into a multi-member LLC in Kansas?
Yes, you can convert your single-member LLC into a multi-member LLC in Kansas by filing an amendment with the Kansas Secretary of State.
Can I dissolve my single-member LLC in Kansas?
Yes, you can dissolve your single-member LLC in Kansas by filing a Certificate of Dissolution with the Kansas Secretary of State.
Can I reinstate my single-member LLC if it has been dissolved?
Yes, you can reinstate your single-member LLC if it has been dissolved in Kansas by filing an Application for Reinstatement with the Kansas Secretary of State.
Do I need to publish a notice of formation for my single-member LLC in Kansas?
No, you do not need to publish a notice of formation for your single-member LLC in Kansas.
Can I have multiple single-member LLCs in Kansas?
Yes, you can have multiple single-member LLCs in Kansas.
What is the personal liability protection offered by a single-member LLC in Kansas?
A single-member LLC provides personal liability protection to its owner by separating their personal and business assets.
Can creditors go after my personal assets if I have a single-member LLC in Kansas?
No, creditors cannot go after your personal assets if you have a single-member LLC in Kansas.
Do I need to file a separate tax return for my single-member LLC in Kansas?
No, you do not need to file a separate tax return for your single-member LLC in Kansas, but you will need to report the income on your personal tax return.
What taxes does a single-member LLC in Kansas need to pay?
A single-member LLC in Kansas is required to pay income taxes and state sales tax, if applicable.
Can I use a PO Box as my single-member LLC’s address in Kansas?
No, you cannot use a PO Box as your single-member LLC’s address in Kansas; you must have a physical street address.
Can I file for a trademark for my single-member LLC in Kansas?
Trademarks are registered at the federal level and are not specific to Kansas.
Can I own property with my single-member LLC in Kansas?
Yes, you can own property with your single-member LLC in Kansas.
Do I need to register my single-member LLC with the Kansas Attorney General’s office?
No, you do not need to register your single-member LLC with the Kansas Attorney General’s office.
Are there any personal income tax benefits to having a single-member LLC in Kansas?
No, there are no personal income tax benefits specifically tied to having a single-member LLC in Kansas.
Do I need to get a business license to operate my single-member LLC in Kansas?
It depends on the type of business you have; some businesses require a license while others do not.
Can I operate my single-member LLC from a home office in Kansas?
Yes, you can operate your single-member LLC from a home office in Kansas.
Can I have employees for my single-member LLC in Kansas?
Yes, you can have employees for your single-member LLC in Kansas.

Also Read

Conclusion

Starting a single-member LLC in Kansas can be a rewarding experience that offers numerous benefits for entrepreneurs. By following this guide and staying informed about state regulations, you can successfully navigate the formation process and set your new business up for success. Feel free to seek professional assistance from a lawyer or accountant if you have questions or need help. Your journey as a business owner has just begun – embrace the challenges and enjoy the rewards of your hard work and determination.

Leave a Comment